A. Price jumps first thing in morning and finds a congestion zone - buyers and sellers have come to a general consensus about what price should be.
B. Price rejects lower price coming in to zone B and then once again rejects lower prices with easing momentum for a second time - this signals that price should be headed upwards.
C. Momentum slows and buyers are less eager to get in to the market. It all comes to a head with dampening volume and then climatic volume on the candle prior to the high.
D. Momentum once again slows coming into resistance and sellers jump in to the market.
E. Resistance is formed at the second final base of the day and then price continues to hold until close.
B. Price rejects lower price coming in to zone B and then once again rejects lower prices with easing momentum for a second time - this signals that price should be headed upwards.
C. Momentum slows and buyers are less eager to get in to the market. It all comes to a head with dampening volume and then climatic volume on the candle prior to the high.
D. Momentum once again slows coming into resistance and sellers jump in to the market.
E. Resistance is formed at the second final base of the day and then price continues to hold until close.